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Understanding Mimic Ransomware: Features, Threats, and Noteworthy Exploits

 


Mimic is a ransomware family first discovered in 2022. Like other ransomware, it encrypts files on a victim’s system and demands a cryptocurrency payment for the decryption key. What makes Mimic particularly concerning is its dual approach: it not only encrypts data but also exfiltrates it beforehand. This stolen data can be used as leverage, with attackers threatening to release or sell it if the ransom is not paid. 
 
Mimic is believed to reuse code from Conti, a well-known ransomware whose source code was leaked after the group publicly supported Russia’s invasion of Ukraine. While the exact origins of Mimic remain unclear, its operations appear to primarily target English- and Russian-speaking users.   
 

Exploitation of Legitimate Tools  

 
One of Mimic’s distinctive features is its exploitation of the API from Everything, a legitimate Windows file search tool developed by Voidtools. By leveraging this tool, the ransomware can quickly locate and encrypt files, increasing the efficiency of its attacks.   
 
Importantly, Mimic does not rely on victims having Everything pre-installed. Instead, it typically packages the tool along with additional malicious programs designed to:   
 
  • Disable Windows Defender to reduce system defenses. 
  • Misuse Sysinternals’ Secure Delete tool to erase backups, making file recovery more difficult. 

Indicators of Infection  

 
Victims of Mimic can identify an infection by the “.QUIETPLACE” extension added to encrypted files. Additionally, the ransomware leaves a ransom note demanding $3,000 in cryptocurrency to provide the decryption key.   
 
In many cases, victims feel compelled to pay the ransom, particularly when backups have been deleted or compromised.   
 

The Emergence of Elpaco   

 
A new variant of Mimic, known as Elpaco, has recently been detected. This variant is associated with attacks that involve brute-forcing Remote Desktop Protocol (RDP) credentials. Once access is gained, attackers exploit the *Zerologon* vulnerability (CVE-2020-1472) to escalate privileges and deploy the ransomware.   
 
Reports of Elpaco infections have surfaced in countries such as Russia and South Korea, underscoring the expanding reach and evolving capabilities of this ransomware family.   
 

The Importance of Vigilance 

 
Although tools like Everything and Secure Delete are not inherently harmful, Mimic’s misuse of these legitimate programs highlights the need for continuous vigilance. Cybercriminals are increasingly finding ways to exploit trusted software for malicious purposes. 
 
As Mimic and its variants continue to evolve, implementing robust cybersecurity measures—including regular system updates, strong authentication protocols, and comprehensive backup strategies—remains essential to mitigating the risk of ransomware attacks.

JPCERT Shares Tips for Detecting Ransomware Attacks Using Windows Event Logs

 

Japan’s Computer Emergency Response Center (JPCERT/CC) recently revealed strategies to detect ransomware attacks by analyzing Windows Event Logs, offering vital early detection before the attack spreads. JPCERT’s insights focus on identifying digital traces left behind by ransomware within four key types of event logs: Application, Security, System, and Setup logs. These logs reveal valuable clues about the entry points used by attackers and can assist in quicker mitigation. Ransomware attacks often target system vulnerabilities and attempt to encrypt files, delete backups, or modify network settings, leaving detectable traces within the event logs. 

For example, the notorious Conti ransomware can be recognized by multiple event logs connected to the Windows Restart Manager, showing event IDs 10000 and 10001. Other ransomware variants like Akira, Lockbit3.0, and HelloKitty, which share similar encryptor technology, leave comparable logs. Additionally, ransomware such as Phobos records when system backups are deleted, a key indicator of malicious activity. Detecting these logs promptly allows administrators to intervene before damage escalates. Midas ransomware, known for spreading infection via network changes, logs event ID 7040. Similarly, BadRabbit leaves event ID 7045 when installing its encryption component, while Bisamware logs events during the beginning and end of a Windows Installer transaction (event IDs 1040 and 1042). 

Other ransomware strains, like Shade, GandCrab, and Vice Society, create errors related to accessing COM applications and deleting Volume Shadow Copies, which are pivotal for restoring encrypted data. JPCERT’s findings illustrate that monitoring for these specific event IDs in combination with a broader security framework could be a game-changer in ransomware defense. Though older ransomware variants like WannaCry and Petya left no such traces in Windows logs, modern ransomware often does. As a result, tracking these logs offers an effective layer of protection against new threats, helping to prevent encryption and data loss. 

It is important to note that no single method of detection is foolproof. A multi-layered approach that combines monitoring event logs with other security tools and protocols remains crucial for protecting systems from ransomware attacks. By using this event log analysis strategy, organizations can significantly reduce the chances of ransomware spreading undetected, giving them the edge in stopping an attack before it cripples their network.

U.S. Government Escalates Sanctions to Combat Rising Cybersecurity Threats

 

In a significant move to combat rising cyber threats, the U.S. government has intensified its use of sanctions against cybercriminals. This escalation comes in response to an increasing number of ransomware attacks and other cybercrimes targeting American infrastructure, businesses, and individuals. The latest sanctions target hackers and cyber groups responsible for some of the most severe breaches in recent history. 

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has spearheaded these efforts. By freezing assets and prohibiting transactions with designated individuals and entities, OFAC aims to disrupt the financial networks that support these cybercriminal operations. This strategy seeks not only to punish those directly involved in cyber attacks but also to deter future incidents by raising the financial and operational costs for would-be hackers. 

One of the key targets of these sanctions is the notorious ransomware group, Conti. This group has been linked to numerous high-profile attacks, including the devastating breach of Ireland’s Health Service Executive in 2021, which disrupted healthcare services nationwide. By imposing sanctions on Conti and associated individuals, the U.S. government aims to dismantle the group’s operational capabilities and limit its reach. 

In addition to Conti, the sanctions list includes individuals connected to Evil Corp, a cybercrime syndicate known for deploying Dridex malware. This malware has been used to steal financial information and execute large-scale ransomware attacks. The sanctions against Evil Corp reflect a broader strategy to target the infrastructure and personnel behind such sophisticated cyber threats. The increase in sanctions also aligns with international efforts to tackle cybercrime. The U.S. has collaborated with allies to coordinate sanctions and share intelligence, creating a united front against global cyber threats. 

This cooperation underscores the recognition that cybercrime is a transnational issue requiring a collective response. Despite these aggressive measures, the fight against cybercrime is far from over. Cybercriminals continually evolve their tactics, finding new ways to bypass security measures and exploit vulnerabilities. The U.S. government’s approach highlights the need for ongoing vigilance, robust cybersecurity practices, and international collaboration to effectively combat these threats. 

In addition to sanctions, the U.S. government is investing in enhancing its cyber defenses. This includes increasing funding for cybersecurity initiatives, promoting public-private partnerships, and encouraging the adoption of best practices across critical sectors. These efforts aim to build resilience against cyber attacks and ensure that the country can swiftly respond to and recover from incidents when they occur. The impact of these sanctions is already being felt within the cybercriminal community. Reports indicate that some groups are experiencing difficulties in accessing funds and recruiting new members due to the increased scrutiny and financial restrictions. 

While it is too early to declare victory, these sanctions represent a significant step in disrupting the operations of major cyber threats. In conclusion, the U.S. government’s use of sanctions against cybercriminals marks a critical development in the fight against cyber threats. By targeting the financial networks that sustain these operations, the government aims to weaken and deter cybercriminals. However, the dynamic nature of cybercrime necessitates continuous adaptation and international cooperation to protect against evolving threats. 

Conti's Legacy: Ransomware's Evolution and Future Threats

Ransomware has been a persistent and highly lucrative threat in the cybersecurity landscape, and one group that has garnered significant attention is Conti. Known for their sophisticated tactics and high-profile attacks, Conti has left a lasting impact on the cybersecurity community. However, recent developments indicate that Conti's legacy is undergoing a transformation, with spinoffs refining their attack strategies and raising concerns about the future of ransomware.

Conti first emerged in 2020 and quickly gained notoriety for its highly effective and profitable ransomware operations. The group targeted a wide range of industries, including healthcare, manufacturing, and finance, leveraging advanced techniques to breach networks and encrypt valuable data. Their success was attributed to their ability to exploit vulnerabilities in organizations' security infrastructure and their aggressive extortion tactics.

However, recent reports suggest that Conti's original group may have disbanded or rebranded, leading to the emergence of spinoffs carrying on their legacy. These new entities, operating under different names, have refined their attack strategies and continue to pose a significant threat to organizations worldwide.

One notable aspect of these spinoffs is their focus on data exfiltration alongside encryption. Instead of merely encrypting files and demanding a ransom, they now steal sensitive data before encryption, increasing their leverage by threatening to expose confidential information if the ransom is not paid. This approach not only amplifies the financial pressure on victims but also raises concerns about potential data breaches and regulatory implications.

To make matters worse, these spinoffs have also adopted a more targeted approach, carefully selecting victims based on their perceived ability to pay a significant ransom. By focusing on organizations with deep pockets or critical infrastructure, they maximize their chances of success and potential profit. Additionally, they have become more adept at evading detection by using sophisticated obfuscation techniques and employing anonymous communication channels.

The evolution of Conti's legacy highlights the need for organizations to remain vigilant and proactive in their cybersecurity measures. This includes implementing robust security controls, conducting regular vulnerability assessments, and educating employees about the risks and best practices for preventing ransomware attacks. It is also crucial for organizations to establish and regularly test incident response plans to minimize the impact and downtime in the event of an attack.

Furthermore, collaboration among law enforcement agencies, cybersecurity firms, and the private sector is essential to disrupt the operations of ransomware groups and bring their members to justice. By sharing threat intelligence and coordinating efforts, the global community can work towards dismantling these criminal networks and mitigating the widespread damage caused by ransomware attacks.

Ransomware Threats in 2023: Increasing and Evolving

Cybersecurity threats are increasing every year, and 2023 is no exception. In February 2023, there was a surge in ransomware attacks, with NCC Group reporting a 67% increase in such attacks compared to January. The attacks targeted businesses of all sizes and industries, emphasizing the need for organizations to invest in robust cybersecurity measures.

The majority of these attacks were carried out by the Conti and LockBit 2.0 groups, with the emergence of new tactics such as social engineering and fileless malware to evade traditional security measures. This emphasizes the need for organizations to address persistent social engineering vulnerabilities through employee training and education.

A proactive approach to cybersecurity is vital for organizations, with the need for leaders to prioritize and invest in robust incident response plans. It's essential to have a culture of security where employees are trained to recognize and report suspicious activity.

According to a Security Intelligence article, the increasing frequency of global cyber attacks is due to several reasons, including the rise of state-sponsored attacks, the increasing use of AI and machine learning by hackers, and the growing threat of ransomware.

The threat of ransomware attacks is expected to continue in 2023, and companies need to have a strategy in place to mitigate the risk. It includes implementing robust security measures, training employees to identify and avoid social engineering tactics, and regularly backing up critical data. As cybersecurity expert Steve Durbin suggests, "Ransomware is not going away anytime soon, and companies need to have a strategy in place to mitigate the risk."

To safeguard themselves against the risk of ransomware attacks, organizations must be proactive. Companies need to focus and invest in strong incident response plans, employee education and training, and regular data backups in light of the rise in assaults. By adopting these actions, businesses can lessen the effects of ransomware attacks and safeguard their most important assets.


FBI: To Install Malware, Hackers are Buying Ad Services

 

The FBI has recommended the citizens to download an ad blocker in order to safeguard themselves from internet security dangers, as cybercriminals use ads to spread ransomware and steal information.  

Trend Micro claims that Royal is the beta version version of the Zeon ransomware that first appeared this year and was linked in August to Conti Team One, one of the organizations responsible for the propagation of the Conti ransomware.

There were three groups of cybercriminals operating behind Conti, one of which switched to Quantum ransomware, another operating the Black Basta, Karakurt, and Blackbyte ransomware families, as well as Royal, and the third being shut down in early 2022, as per a chart that a security expert Vitali Kremez shared in August.

Royal ransomware has been employed in assaults mostly aimed at targets in the US and Brazil, according to Trend Micro. It is typically delivered via callback phishing, tricking victims into downloading remote access software.

The FBI highlighted that these adverts were also used to spoof financial websites, notably exchange platforms for cryptocurrencies.

Businesses employ search engine advertising services to make sure their ads show up at the top of search results with the smallest possible difference between an advertisement and a real internet search result. However, the warning noted that online criminals are also using domains that are similar to legitimate businesses or services to purchase these services for illicit reasons.

How to spot fake advertisements:
  • Prior to clicking an advertisement, check the URL. Look out for typos or unusual suffixes on a link because it will reveal the true URL.
  • If you want to look up businesses, enter the address in the browser's address bar rather than using a search engine like Google. 
  • Try using an ad blocker. These block all advertisements, so you can simply avoid being targeted by fraudulent ads but also fail to see any legitimate ones.
Ad blockers can help consumers avoid misleading adverts, but they can also severely damage their online experience. Many websites depend on advertising, thus some won't let you visit if you are using an ad blocker. When using an ad blocker, be sure to put your preferred websites to the list of the program. This will allow you to see advertising on this site but prevent you from seeing them elsewhere.

To assure the development of strong, safe passwords and keep away of malicious practices, the FBI also advises utilizing a password manager. Another effective strategy for protecting against online attacks is antivirus software.



Conti Gang Doppelganger Adopts Recycled Code 

A ransomware attack from a brand-new gang dubbed 'Monti,' which primarily exploits Conti code has come to the surface. 

The Monti ransomware was found and revealed by MalwareHunterTeam on Twitter on June 30, but Intel471 and BlackBerry independently announced their study into Monti on September 7th.

The malware's developers constitute a well-known ransomware group that has launched numerous attacks. They operate under "Wizard Spider" and could be linked with the global Trickbot cybercrime ring. 

Reportedly, the cybercrime group that has a base in Russia, supports the Russian government's goals, particularly the Ukraine conflict. 

In return for a portion of the ransom money collected, the Conti gang offers 'its members' access to its software. The group's ability to scale operations is a direct result of the aforementioned. The group resorts to the ransomware as a service (RaaS) approach to disseminate the infection.

According to Intel471, "Monti might be a rebranded version of Conti or even a new ransomware version that has been developed utilizing the disclosed source code," it was published on February. It really doesn't appear like Monti has been involved in enough activities for the security company to establish a connection to Conti." 

Since the Conti disclosures in February effectively handed Monti malicious actors a step-by-step roadmap to mimicking Conti's notoriously successful actions, BlackBerry appears to be more certain that Monti is a copycat than a legitimate successor to its namesake.

Apart from one, Monti threat actors used the Action1 Remote Monitoring and Maintenance (RMM) agent, and the majority of Indicators of Compromise (IOCs) discovered by the BlackBerry IR team in the Monti attack were also detected in prior Conti ransomware attacks. 

Experts want to highlight a useful technique that was made feasible by our awareness of the code repetition before  Monti's reuse of Conti's encryptor code. 

The BlackBerry IR team was aware that Conti encryptor payloads do not always completely encrypt each file because we were familiar with Conti v2 and v3 encryptor payloads. Source code research reveals that Conti payloads combine a file's location, type, and size to decide which encryption techniques to employ. 

The BlackBerry IR team was able to recover completely, unencrypted strings from encrypted log files because of this information.

Conti's activities have slowed down recently, some experts have proposed that Conti's reduced activity is the consequence of a rebranding effort similar to those undertaken by various ransomware strains in the past, perhaps involving several members of the Conti gang. Other sources claim that other RaaS firms, like Karakurt and BlackByte, have engaged former Conti operators.

Whether Conti is being dubbed Monti to spoof the earlier strain or it is simply another new ransomware variety remains unclear, we will probably continue to see this new version have an impact on organizations all around the world. However, utilizing publicly accessible binaries to develop fresh ransomware or relaunch an old one would potentially offer defenders a head start as Monti develops.





Networks Breached via Bumblebee Loader


The Bumblebee loader is increasingly being used by hackers linked to the IcedID, TrickBot, and BazarLoader malware to infiltrate target networks and carry out additional post-exploitation operations.

When Google's Threat Analysis Group (TAG) exposed the actions of an initial access broker named Exotic Lily with connections to the TrickBot and the bigger Conti collectives in March 2022, Bumblebee initially came to light.

What is Bumblebee?

Researchers discovered that Bumblebee is a successor for the malware known as BazarLoader, which previously distributed the Conti ransomware.

Spam emails are where the Bumblebee virus first appears. The malicious Dynamic Link Library (DLL) file is finally dropped by the ISO file that can be downloaded using the link in this email. On the victim's computer, the DLL file continues to load Bumblebee's ultimate payload.

An identical replica of the data found on an optical disc, such as a CD or DVD, is stored in an archive file called an ISO file. They are primarily employed to distribute huge file sets intended for burning onto optical discs or backup optical discs.

Analysis by experts 

According to Cybereason, most Bumblebee infections were initiated by end users executing LNK files, which load the malware via a system binary.

As per experts from Cybereason Meroujan Antonyan and Alon Laufer, "the virus is distributed by phishing emails with an attachment or a link to the malicious archive containing Bumblebee."

Bumblebee operators apparently did extensive surveillance after system compromise and diverted command execution output to files for exfiltration.

The loader is launched using the command found in the LNK file, which serves as a conduit for subsequent steps including persistence, privilege escalation, reconnaissance, and data theft.

After attaining elevated access to infected endpoints, the threat actor also uses the Cobalt Strike adversary simulation framework to move laterally throughout the network. By deploying AnyDesk remote desktop software, persistence is achieved.

The technical report stated that the hackers 'disrupted Active Directory and used confidential data such as users' logins and passwords for lateral movement. Less than two days passed between the initial access and the compromising of Active Directory.

Cybereason asserts that Bumblebee needs to be handled as a serious threat due to the attack's proactivity.